Net Element merges with Cazador, Gets $81 Million

MIAMI - Net Element, publisher of online destinations and soon-to-be operator of a mobile commerce platform for Russia and other emerging markets, and Cazador Acquisition Corporation, a special purpose acquisition company, announced the execution of a merger agreement that will infuse up to $81 million into Net Element and provide the necessary financial resources for the company’s next stage of growth.

The combined entity, which will be named Net Element International, is applying to be listed on NASDAQ under the ticker symbol “NETE.” Upon completion of the business combination, Net Element, which currently operates several entertainment and lifestyle online destinations and is developing a mobile commerce and payment-processing platform for emerging markets, will name Cazador’s current CEO, Francesco Piovanetti, as its CEO. Net Element also will add several key members of Cazador’s asset management team.

The business combination is subject to the approval of Cazador and Net Element’s respective shareholders as well as other customary closing conditions. Assuming the closing conditions are met, the business combination is expected to be completed during the third quarter 2012.

Piovanetti said, “We are truly excited about the immediate positive impact of our capital infusion, knowing that it will help strengthen Net Element’s mobile commerce and payment platform in addition to providing much-needed capital to promote and market its online content destinations.”